A proforma invoice is a preliminary bill you send before delivering goods or services. It lists the same items, quantities and prices as a real invoice, but nothing has shipped and no payment is due yet. Sellers send one so the buyer can sign off on price and terms first, most often for large orders, international shipments, or when the buyer needs the document for financing or customs.
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What is a Proforma Invoice?
A proforma invoice looks like a finished invoice, itemized goods or services, quantities, prices, taxes and shipping, but it isn't one yet. Nothing has shipped, and the numbers can still move a little before the seller issues the real invoice.
Once both sides agree on the proforma invoice's terms and costs, the seller writes up the sales invoice that actually collects payment.
What Does a Proforma Invoice Look Like? (Example)
Say a homeware wholesaler in Portland is shipping a bulk order of ceramic mugs to a retailer in the UK. Before production starts, the wholesaler sends a proforma invoice so the retailer can confirm the order and arrange a deposit.
- Proforma invoice #: PI-2031
- Date issued: July 21, 2026
- Valid until: August 20, 2026
- Seller: Northgate Home Goods, Portland, Oregon
- Buyer: Foxglove Living, Manchester, UK
- Items: 2,000 ceramic mugs at $4.50 per unit
- Subtotal: $9,000.00
- Estimated freight (FOB Portland): $650.00
- Total estimated cost: $9,650.00
- Payment terms: 30% deposit on approval, balance due before shipment
It looks almost identical to a regular invoice, with itemized costs, a total and payment terms. The differences are the "proforma" label and a validity date instead of a due date, since the seller hasn't shipped anything yet and the final numbers could still shift slightly once the order is confirmed.
Rather than building one from scratch, copy Portant's free proforma invoice template. It already has the items, quantities, prices and payment terms laid out, so you swap in your own seller and buyer details and it's ready to send.
When to Use a Proforma Invoice
Reach for a proforma invoice in these situations:
Advance Payment or Deposit
Use a proforma invoice when you're requesting a deposit or advance payment on a large order. It gets the buyer's written agreement on cost, quantity and terms before you ship anything, which gives both sides a reference if a dispute comes up later.
If you only need to collect part of the total upfront, a deposit invoice is the better fit.
Shipping and Customs Clearance
Before a shipment leaves the country, send the buyer a proforma invoice. Customs agents and freight forwarders use it to classify the goods and estimate duties before the real invoice and shipment arrive.
Obtaining Financing or Credit
Some suppliers ask for a proforma invoice before extending credit terms, since it spells out exactly what's being bought and confirms payment is expected. Banks and lenders sometimes accept one the same way, as proof of an order, when arranging financing.
Invoicing Foreign Customers
When you sell to customers abroad, send a detailed proforma invoice that meets that country's invoicing requirements. If you're choosing a tool to generate these documents, our invoicing software roundup compares the options.
Proforma invoices play a critical role in international business this way, helping ensure goods are paid for and delivered as agreed.
Why do Businesses Use Proforma Invoices?
A proforma invoice does three jobs at once:
- It spells out exactly what's being sold. Itemized goods or services, quantities and prices, so both sides expect the same delivery.
- It's a paper trail both sides agreed to. Once a buyer signs off, the price and terms are much harder to dispute later.
- It clears customs faster. Customs officials and freight forwarders use it to classify and value a shipment before the goods and the final invoice arrive.
What Information Does a Proforma Invoice Contain?
A proforma invoice contains the same information as a regular commercial invoice. It typically includes:
- Seller's and buyer's name and contact information
- Description of goods or services being sold
- Quantity and unit price of goods or services
- Accounts payable
- Payment terms and conditions
- Shipping costs
- Incoterms (such as FOB, CIF, etc.)
- Any applicable taxes or duties
- The date of the invoice and the validity period of the offer.
- The invoice number/proforma invoice number
How does a Proforma Invoice Differ from an Invoice?
A proforma invoice consists of the same information as an invoice but isn't necessarily a record of a completed sale. Instead, it's an estimate for goods or services that haven't been provided yet. The difference between a quotation and an invoice works the same way: the quote proposes the sale, the invoice collects payment for it.
| Proforma invoice | Invoice | |
|---|---|---|
| Sent | Before the sale is finalized | After goods or services are delivered |
| Payment due | Not yet, it's an estimate | Yes, on the stated terms |
| Numbers | Can still change | Final |
| Used for | Buyer sign-off, customs, financing | Collecting payment, accounting records |
Portant's free Google Sheets invoice template fills in the seller, buyer, item and total fields straight from your spreadsheet, whether you're sending a proforma invoice for sign-off or the final invoice once the order ships. Connect a sheet, and send invoices in batches instead of building each one by hand.
FAQs
Q. Is a proforma invoice legally binding?
A. No. A proforma invoice states expected costs and terms rather than issuing a formal demand for payment, so it isn't a binding sales contract on its own. Once a buyer reviews and signs off on one, though, the agreed price and terms are much harder to dispute later.
Q. Can you pay from a proforma invoice?
A. You can, and sellers sometimes ask for a deposit against one, especially for custom orders or international shipments. The formal payment obligation only kicks in once the seller issues the final invoice, so treat a proforma invoice as confirmation of terms, not the bill itself.
Q. What's the difference between a proforma invoice and a quote?
A. A quote is an early, often informal estimate meant to open negotiation, while a proforma invoice comes after both sides have agreed on price and terms, formatted like a real invoice with itemized costs. Send a quote if the numbers might still change, and a proforma invoice once they're locked in.
Q. Do you need a proforma invoice for customs?
A. Often, yes, for shipments crossing an international border. Customs authorities and freight forwarders use it to estimate duties and check the shipment's value before the goods and the final invoice arrive, which is why exporters send one alongside the shipping paperwork.
Q. How do you create a proforma invoice?
A. List the same details as a regular invoice: seller and buyer information, itemized goods or services, quantities, unit prices, taxes, shipping and a validity period, then label it clearly as a proforma invoice. Portant's free proforma invoice template already has this layout built in, so you can fill in the details and send it in minutes.
Takeaway
A proforma invoice confirms what's being sold and its price before anything ships, and it can double as the paperwork customs, freight forwarders and lenders ask for along the way. It isn't the final invoice, so don't use it to collect payment.
Connect Portant's Google Sheets invoice template to your spreadsheet and you can generate a proforma invoice, or the final invoice once the order ships, in the same few clicks.
